VIP Industries Ltd., headquartered in Mumbai, Maharashtra, is India’s largest manufacturer of luggage and travel accessories. Recognised as the world’s second-largest and Asia’s leading luggage maker, the company owns prominent brands such as Aristocrat, VIP, Carlton, Skybags, and Caprese held a 56% market share in the branded luggage sector during the financial year 2024
On 18th December 2024, VIP Industries announced that it had secured a favourable ruling from the Maharashtra Sales Tax Tribunal regarding appeals filed against various assessment orders issued by the Assistant/Deputy Commissioner of Sales Tax. These orders covered financial years 2009-10 to 2017-18.
The initial assessment orders had disallowed branch transfer claims and levied central sales tax on such transactions. However, the tribunal has now overturned these decisions, accepting the company’s stock transfer claims. This legal matter, previously reported as a contingent liability in the company’s financial statements, will result in a refund of ₹357.56 crore to VIP Industries, as stated in an exchange filing.
Despite this positive development, VIP Industries reported a loss of ₹33.05 crore for the second quarter of FY25, a sharp contrast to the profit of ₹13.28 crore achieved during the same period in the previous financial year. The company’s revenue for the quarter stood at ₹544.26 crore, reflecting a marginal year-on-year decline of 0.3%.
At 3:03 PM on the NSE, the share price of V I P Industries Ltd. was ₹483.50, and it is currently declining.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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